Post by ferris1248 on Sept 17, 2024 5:29:02 GMT -5
"Jerome Powell is set to take plenty of partisan fire this week if he, as expected, sends a signal that the fight against inflation is nearing an end with an interest rate cut — the first one in four years."
"That appears to be just fine with him."
"The political winds can quickly shift, of course. But the Federal Reserve chair has put himself in a stronger-than-expected position: The central bank he oversees appears likely able to neutralize critics in the days ahead even as it nears the climax of a year where it has not only has had to navigate a complex economic picture, but a heated 2024 election as well."
"Under debate is a decision 14 months in the making about when and how aggressively to begin bringing down interest rates. Powell and his colleagues appear to be deciding between whether to cut rates by 25 or 50 basis points when they meet this week."
"Either option appears right in the middle of an array of political voices."
Sure, former President Donald Trump will likely lambaste any sort of Fed "pivot" just weeks before an election. But Trump has been mixed in his critiques of Powell as of late and his campaign is more focused on lowering interest rates."
""Perhaps most tellingly, Trump himself has been ignoring the central bank recently to focus elsewhere and the topic didn't even come up at last week's debate."
"Powell is also set to be dinged from the left for, in their view, waiting too long. On Monday, three Democratic senators, including Elizabeth Warren of Massachusetts, even urged a 75 basis point cut."
"So they’re also likely to be left unsatisfied."
"As for the White House, Powell is unlikely to hear publicly from the current administration this week, with Vice President Kamala Harris recently reiterating her desire to let the Fed operate independently."
"And White House National Economic adviser Lael Brainard offered in a speech at the Council on Foreign Relations Monday that President Joe Biden "made a clear commitment to respect the independence of the Federal Reserve in fighting inflation."
"Perhaps most importantly for Powell, as the economic evidence piles up in favor of a cut, a wide swath of the political spectrum in both parties is already signaling that it's just fine with the central bank's widely anticipated move.
"Whether or not the Fed's strategy is right for the economy remains to be seen. But purely on the politics, as the old expression goes, getting attacked from both sides means you might be doing something right.
finance.yahoo.com/news/jerome-powell-appears-set-to-sidestep-politics-even-as-he-oversees-a-likely-central-bank-rate-cut-090033866.html
"That appears to be just fine with him."
"The political winds can quickly shift, of course. But the Federal Reserve chair has put himself in a stronger-than-expected position: The central bank he oversees appears likely able to neutralize critics in the days ahead even as it nears the climax of a year where it has not only has had to navigate a complex economic picture, but a heated 2024 election as well."
"Under debate is a decision 14 months in the making about when and how aggressively to begin bringing down interest rates. Powell and his colleagues appear to be deciding between whether to cut rates by 25 or 50 basis points when they meet this week."
"Either option appears right in the middle of an array of political voices."
Sure, former President Donald Trump will likely lambaste any sort of Fed "pivot" just weeks before an election. But Trump has been mixed in his critiques of Powell as of late and his campaign is more focused on lowering interest rates."
""Perhaps most tellingly, Trump himself has been ignoring the central bank recently to focus elsewhere and the topic didn't even come up at last week's debate."
"Powell is also set to be dinged from the left for, in their view, waiting too long. On Monday, three Democratic senators, including Elizabeth Warren of Massachusetts, even urged a 75 basis point cut."
"So they’re also likely to be left unsatisfied."
"As for the White House, Powell is unlikely to hear publicly from the current administration this week, with Vice President Kamala Harris recently reiterating her desire to let the Fed operate independently."
"And White House National Economic adviser Lael Brainard offered in a speech at the Council on Foreign Relations Monday that President Joe Biden "made a clear commitment to respect the independence of the Federal Reserve in fighting inflation."
"Perhaps most importantly for Powell, as the economic evidence piles up in favor of a cut, a wide swath of the political spectrum in both parties is already signaling that it's just fine with the central bank's widely anticipated move.
"Whether or not the Fed's strategy is right for the economy remains to be seen. But purely on the politics, as the old expression goes, getting attacked from both sides means you might be doing something right.
finance.yahoo.com/news/jerome-powell-appears-set-to-sidestep-politics-even-as-he-oversees-a-likely-central-bank-rate-cut-090033866.html
